Tax inversion is the relocation of a corporation’s legal headquarters to a lower-tax nation (such as Canada), while retaining its material operations in the higher-tax country of origin (United States). This has been seen with the Burger King – Tim Hortons deal, and the more recent Pfizer – Allergan business combination. The companies on our list today are currently paying high tax rates in the U.S., and may consider performing a similar tax inversion strategy with a Canadian business counterpart.
Staples Inc. (NASDAQ: SPLS) – $12.32
Miscellaneous Specialty Retailers
Staples, Inc. is a provider of products and services that serve the needs of business customers and consumers. The Company offers a selection of products, such as websites and mobile platforms, retail and online shopping and a range of copy and print and technology services. It operates in three business segments: North American Stores & Online, North American Commercial and International Operations.
- Market Cap: $7,929,433,734
- Revenue (LTM): $21,448,467,000
- Income Tax Rate (LTM): 84.1%
- Provisions for Income Tax (LTM): $172,540,000
Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) – $182.24
Pharmaceuticals
Alexion Pharmaceuticals, Inc. is a biopharmaceutical company that is focused on the development and commercialization of life-transforming therapeutic products. As of June 23, 2015, the Company had eight product candidates in clinical trials for 11 indications. The Company’s product pipeline includes complement inhibitor portfolio, metabolic rare disease portfolio and preclinical candidates.
- Market Cap: $41,063,100,979
- Revenue (LTM): $2,502,656,000
- Income Tax Rate (LTM): 63.3%
- Provisions for Income Tax (LTM): $397,824,000
Hershey Co. (NYSE: HSY) – $86.91
Food Processing
The Hershey Company (Hershey) is a provider of chocolate and sugar confectionery. The Company’s principal confectionery offerings include chocolate and sugar confectionery products; pantry items, such as baking ingredients, toppings and beverages; snack items, such as spreads, and gum and mint refreshment products.
- Market Cap: $13,573,039,493
- Revenue (LTM): $7,487,431,000
- Income Tax Rate (LTM): 45.8%
- Provisions for Income Tax (LTM): $424,800,000
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Maxim Integrated Products Inc. (NASDAQ: MXIM) – $38.83
Semiconductors
Maxim Integrated Products, Inc. is engaged in designing, developing, manufacturing and marketing a range of linear and mixed-signal integrated circuits, referred to as analog circuits. The Company also provides a range of high-frequency process technologies and capabilities for use in custom designs. The Company’s products include switching regulators, charge pumps, linear regulators, light-emitting diode drivers, power switching, transceivers, level translators, broadband switches, current loop products, real-time clocks, data loggers and microcontrollers.
- Market Cap: $11,036,266,988
- Revenue (LTM): $2,289,099,000
- Income Tax Rate (LTM): 51.2%
- Provisions for Income Tax (LTM): $35,607,000
Newmont Mining Corp. (NYSE: NEM) – $17.91
Gold
Newmont Mining Corporation (Newmont) is a global mining company, which is focused on the production of and exploration for gold and copper. The Company is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Indonesia, Ghana, New Zealand and Suriname.
- Market Cap: $9,476,494,497
- Revenue (LTM): $7,930,000,000
- Income Tax Rate (LTM): 46.4%
- Provisions for Income Tax (LTM): $651,000,000
